How can you ensure your loved ones are protected now and in the future?

Estate planning is often overlooked by families, yet it’s essential for every adult from any size of estate. When we think of estate planning, we usually think of a will or a trust. However, estate planning is so much more. Not only do you need to determine how your assets are distributed, you need to define health care wishes, appoint decision makers and name guardians of minor children.

Some families are hesitant to discuss estate planning because it forces them to confront the unknown. It’s important not to focus on negative outcomes. Focus on a healthy and happy future.  The peace of mind that an estate plan provides can be instrumental to overcoming emergencies and challenges.

To help you get started, we’ve outlined five tips on how to approach estate planning with your loved ones: 

1. Set a Date – Don’t spring the topic on your loved ones suddenly and expect an informed response. Select a time and day to discuss estate planning when it’s convenient for everyone. This will allow you and your loved ones to gather your thoughts and prepare for the conversation. A neutral location may also be beneficial.   
2. Explain Your Intentions – Conversations involving death or illness can be uncomfortable. It’s important to explain your intentions with family and friends from the start. An estate plan isn’t a death wish. It’s a set of legal documents that all adults need to ensure their wishes are upheld and their loved ones are protected. It’s a conversation all families need to have at one time or another.
3. Research Your Estate Planning Options – There are numerous options for obtaining an estate plan, and each suits different individuals with different needs and budgets. To start, you can talk with an attorney specializing in estate planning or check out an online estate plan provider like the Estate Plan Store. It’s vital to get any questions answered before finalizing a plan or spending money unnecessarily. You need to understand how the process works, which documents you need, and which life events warrant an updated estate plan.
4. Select an Estate Planning Method – Determine which method works best for you and your loved ones, and gather relevant information/documentation. Many individuals prefer one-one-one guidance during this portion of the process. Remember, an attorney isn’t always necessary. Depending on your needs, a legal document preparer may work just as well.     
5. Keep the Lines of Communication Open – One conversation typically isn’t enough. Keep the lines of communication open before, during and after the initial estate plan is complete. You may find that discussing the estate planning process can actually bring you and your loved ones closer.

If you’re like most people, you probably have a basic understanding of estate planning.  However, are those perceptions based on fact or fiction?

Estate planning is the process of defining an individual’s financial, health care and personal affairs in the event of incapacity or death. It determines how one’s assets are managed and distributed, who will be made guardian of minor children, and how health care, financial and business decisions will be handled.

Estate planning can be crucial to avoiding probate and family squabbles. However, according to a 2008 FindLaw.com survey, nearly 60 percent of Americans don’t possess the most basic component of an estate plan – a will.

Now, let’s explore a few common misconceptions:

Myth: Estate planning is just for the wealthy.
Fact: Every adult needs a basic estate plan – no matter how big or small the estate. It is the only way you can ensure how your health care, guardianship and financial wishes should be honored.

Myth: If I don’t have a will, all of my assets will go to my children.
Fact: The State will decide how your assets are distributed if you don’t. In some cases, your children may receive your assets. In other cases, they won’t. Often, costly legal battles ensue when individuals fail to spell out their wishes legally. A basic estate plan will save your loved ones time, money and stress, while giving you peace of mind and control of your own estate. 

Myth: You don’t need an estate plan until you’re married or have children.
Fact: All persons 18 years or older need a basic estate plan with a will, living will, HIPAA authorization and powers of attorney. If a serious accident happens, how would you want your health care and financial decisions handled? Your wishes need to be spelled out legally to help ensure they’re honored.

Myth: I need an attorney to create an estate plan.
Fact: While attorneys are necessary in many legal manners, they are not necessary to create a basic estate plan. Our basic estate plan includes a will, living will, springing general power of attorney, durable medical power of attorney, durable mental health care power of attorney, HIPAA authorization, and funeral and burial instructions. No attorney needed, same quality plan.